Andorra Allocates €6M for Rent Aid Capping Payments at 30% of Income

Andorra's government will allocate €6 million to a new rental assistance programme, capping household rent payments at 30% of income, Prime Minister Xavier Espot has confirmed. The executive plans to approve the measure in the coming weeks, with presentation details verified by government spokesman Guillem Casal following a Council of Ministers meeting.

Speaking on Ràdio Nacional d'Andorra's Avui serà un bon dia programme, Espot positioned the initiative as support for working- and middle-class families facing high market prices, particularly first-time renters like young people starting out or those dealing with separations. He highlighted that about 70% of tenants already benefit from stable conditions thanks to earlier steps, such as contract extensions and rent increase limits. The funding stems from recent economic growth and public revenues, including passive resident contributions.

From next year, Espot said, rents will be tied to a fixed income percentage even on tenant changes, preventing full market liberalisation. He admitted past housing policy shortfalls over eight years, regretting slower progress on public rental stock—aiming for 600 flats by the legislature's end rather than 1,000—and called for greater boldness. "I would have liked to be braver on housing," he stated.

Addressing opposition claims that his Democrats for Andorra (DA) party aids speculators, Espot acknowledged such figures likely exist around DA but also around Concòrdia, Andorra Endavant and the Social Democratic Party (PS). He denied family ownership of rental properties, stressed balancing property profitability with social function, and argued speculation would have worsened without government limits. While recognising possible legal loopholes, he rejected accusations of favouring the issue.

Concòrdia leader Cerni Escalé criticised the €6 million as poorly spent, arguing it subsidises price hikes driven by speculation under DA governance. He suggested redirecting funds to education or health and warned the policy could prove unsustainable as rents rise without tackling inflated market prices.

Espot also defended timelines for the EU association agreement, insisting its signing stabilises the text without triggering application. He accused Concòrdia and Andorra Endavant of rushing referendum calls and warned their electoral win and "no" campaign would doom the deal, with citizens deciding via consultation after Council General ratification.